Andhra Cements Q1 Results: Net Loss Widens 24% YoY To ₹35.93 Cr

Andhra Cements Limited reported a net loss of ₹35.93 crore for the first quarter of FY26 (Q1FY26), ending June 30, 2026, compared to a net loss of ₹29.62 crore in the corresponding period of the previous year. The company’s revenue from operations rose 42.8% year-on-year to ₹142.17 crore, up from ₹99.53 crore in Q1FY25. Despite the top-line growth, higher finance costs and power and fuel expenses contributed to a wider bottom-line deficit.

The Board of Directors approved the unaudited financial results at a meeting held on July 27, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory auditors, B S R & Co., issued an unmodified conclusion on the limited review of the financial statements. The results were prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013.

Financial Performance Highlights

Metric	Q1FY26 (₹ in lakhs)	Q1FY25 (₹ in lakhs)	Change
Revenue from Operations	14,217	9,953	+42.8%
Total Income	14,336	10,058	+42.5%
Total Expenses	19,113	13,020	+46.8%
Loss Before Tax	(4,777)	(2,962)	-61.3%
Net Loss	(3,593)	(2,962)	-21.3%
Basic EPS (₹)	(3.90)	(3.21)	-21.5%

Revenue from operations grew significantly, reflecting improved operational activity. However, total expenses rose at a faster pace than revenue, increasing by 46.8% to ₹191.13 crore. Key cost drivers included power and fuel expenses, which jumped 19.3% to ₹49.14 crore, and freight and forwarding expenses, which surged 60.7% to ₹33.55 crore. Finance costs also increased 55.5% to ₹31.94 crore, exacerbating the pre-tax loss.

What the Numbers Show

The divergence between revenue growth and expense escalation highlights margin compression during the quarter. While top-line growth was robust, the inability to control variable costs—particularly power, fuel, and logistics—led to a wider operating deficit. The recognition of deferred tax assets, based on projected future taxable income, reduced the reported net loss by ₹11.84 crore. Without this accounting adjustment, the cash-flow impact of the operations would have been more severe. This underscores the company’s reliance on future profitability projections to mitigate current period losses.

Corporate Developments

Andhra Cements Limited is undergoing significant corporate restructuring. The Board approved a Scheme of Amalgamation on June 5, 2026, under which the company will merge into its parent, Sagar Cements Limited, effective April 1, 2026. The scheme requires approvals from stock exchanges, SEBI, shareholders, creditors, and the National Company Law Tribunal.

Additionally, Sagar Cements Limited has completed Offer for Sale (OFS) transactions to meet Minimum Public Shareholding requirements, reducing its stake in Andhra Cements from 90% to 75%. The OFS involved the sale of 1,38,25,821 equity shares through stock exchange mechanisms in January and March 2026.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.89%	-1.20%	-7.44%	-16.82%	-30.97%	-15.94%

Andhra Cements Limited approved its audited financial statements for the year ended March 31, 2026, during its 87th Annual General Meeting (AGM) held on June 25, 2026. The meeting, conducted via video conferencing, saw the adoption of financial reports alongside the re-appointment of a director and the ratification of cost auditor remuneration. These approvals are critical for maintaining regulatory compliance and operational continuity for the subsidiary of Sagar Cements Limited.

Shareholders sanctioned material related party transactions with two specific entities: M/s Sagar Cements Limited and M/s RV Consulting Services Private Limited. The approval for transactions with Sagar Cements Limited covers an aggregate value up to ₹500 crore for a period of one year from the date of approval. Transactions with RV Consulting Services Private Limited were approved for any aggregate value up to ₹100 crore for a one-year period.

Voting Results

M/s BSS & Associates, Company Secretaries, acted as scrutinizers for the voting process. The remote e-voting period commenced on June 21, 2026, and concluded on June 24, 2026. The resolutions were passed with the requisite majority based on the scrutinizer's consolidated report dated June 26, 2026.

Resolution Type	Description	Votes in Favor	Votes Against	% Valid Votes Favour
Ordinary	Adoption of Audited Financial Statements for FY26	83,446,347	1	100
Ordinary	Re-appointment of Mr. S. Sreekanth Reddy as Director	83,446,337	11	100
Special	Ratification of Cost Auditors' remuneration for 2026-27	83,446,347	1	100
Special	Material Related Party Transactions with M/s Sagar Cements Limited	14,317,057	11	99.9999
Special	Material Related Party Transactions with M/s RV Consulting Services Private Limited	14,317,057	11	99.9999

The ratification of remuneration for cost auditors for the financial year 2026-27 was approved at ₹5,00,000 plus reimbursement of applicable taxes and expenses. The voting results will be submitted to the stock exchanges under Regulation 44(3) of the SEBI (LODR) Regulations, 2015. The disclosure was made by G. Tirupati Rao, Company Secretary.